Source: The Inner Sea World Guide, pg(s). 65
Peddlegate is built on the ruins of an ancient strip mine that has been played out for many years. Many of its underground forges, tunnels, and living quarters are still inhabited, creating a divided city: tall towers surrounded by a thick wall above, and dark, cramped caverns below.
So close to the Five Kings Mountains, it is not surprising that a large population of dwarves make their home in Peddlegate. The stout folk of the city have a reputation of being even more stubborn than their brethren in the mountains. Many Drumish people refuse to try and change the mind of a Peddlegate dwarf, fearing that such an interaction could stretch on for years.
Relations with Kyonin
The dwarves of Peddlegate have been trying to increase trade with the elven nation of Kyonin for years, but to little avail. It is only their incredible stubbornness that keeps them coming back to the negotiating table, hoping that their northern neighbors will someday be persuaded.